Medical cannabis group Cilo Cybin made its debut on the JSE’s AltX as a special purpose acquisition company (SPAC) on Tuesday.
The cannabis group aims to position itself strategically to pursue growth in the biotechnology and medical cannabis sectors through acquisitions.
The AltX Board of the JSE is a parallel market focused on providing good quality, small and medium-sized growth companies with a growth path and access to capital.
A SPAC is a unique entity listed on the JSE with the specific purpose to raise funds through an initial public offering (IPO) and use those funds to acquire one or more established companies or assets.
Through the listing, the group aims to secure its first asset, Cilo Cybin Pharmaceutical and its associated 2,500m2 facility in Midrand.
Cilo Cybin is the first cannabis SPAC to list on the AltX. Cilo Cybin Pharmaceutical is the first entity in SA to secure licences for both medical cannabis cultivation and manufacturing. It produces and supplies a number of medical cannabis products to local and international markets.
The listing increases the number of listed companies on the local bourse to 282, with a total market capitalisation of about R18.6-trillion.
“Embrace the highs, conquer the challenges. Each hurdle we overcome fuels our growth and strengthens our resolve. Together, we forge ahead, unwavering in our commitment to redefine possibilities and lead with innovation in the health and wellness industries,” Cilo Cybin founder and CEO Gabriel Theron said.
“Once this acquisition is complete, the strategy is to transition to the JSE main board and subsequently pursue additional growth avenues, both organic and through further acquisitions. Cilo Cybin is only making 10% of its total equity available, with 71-million ordinary shares at R1 apiece,” the JSE said in a media statement.
“The addition of Cilo Cybin to the AltX underscores our commitment to embracing sectors poised for innovation, like medical cannabis and biotechnology,” JSE director of capital markets Valdene Reddy said.
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